Financial Markets Daily Report27 January 2022
During a volatile session, the risk-on mood recorded during the first hours of trading was eclipsed by a hawkish stance during the first Federal Reserve meeting of the year.
- During a volatile session, the risk-on mood recorded during the first hours of trading was eclipsed by a hawkish stance during the first Federal Reserve meeting of the year.
- The Fed president Powell signaled that the central bank is likely to raise the policy interest rates in March while not ruling out additional hikes at every subsequent meeting this year. In addition, Powell reaffirmed plans to end net asset purchases in early March before launching a process to reduce the size of the balance sheet.
- In this context, equity prices ended day with further losses in the US, contrasting with the positive results recorded across Europe and Asia. Yields on sovereign bonds also rose notably while the USD appreciated against its peers, nearing the 1.12 threshold against the EUR. The price of a barrel of Brent also rose to $90.
- Today the focus will be on the release of the Q4 real GDP flash report for the US.